The Global Tequila Market is estimated to be valued at US$ 434.1 Mn In 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Tequila is a distilled alcoholic beverage made from the blue agave plant that is native to Mexico. The blue agave plant provides the characteristic essence and flavoring to tequila. The most common varieties of tequila include Blanco, Reposado, Añejo, and Extra Añejo based on aging. Tequila has a distinctive flavor that is slightly sweet and peppery. It has gained popularity around the world as a versatile spirit that can be consumed on its own or used in cocktail mixes. The advantages of tequila include its premium image, versatility in usage, and association with celebrations and social events.
Market key trends:
One of the key trends driving the tequila market growth is rising popularity among millennials. Millennials have emerged as a promising consumer base for premium and super premium spirits like tequila. They are more willing to spend on high-quality alcoholic beverages and new product varieties. Furthermore, millennials are adept with social media and online platforms, which allows premium spirit brands to effectively market and promote their products. This helps boost brand awareness and trial among younger consumers. The vibrant marketing strategies and innovative product launches catering to millennials are expected to support the market expansion over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the capital intensive distillation process required to produce tequila. However, the growing demand from millennial consumers provides motivation for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate since a few large retailers dominate sales in major markets like the US. However, the rising popularity of premium and super premium tequila varieties enhances customer loyalty.
Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the dependence of tequila producers on agave grown in specific growing regions of Mexico. However, rising agave production reduces supplier control.
Threat of new substitutes: The threat of new substitutes is low as tequila has a unique taste and cultural image. However, strong growth in premium rum and craft spirits increase substitution risks.
Competitive rivalry: Competition among incumbent players is high owing to their investments in expanding product portfolios and global marketing.
Key Takeaways
The Global Tequila Market Growth is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing premiumization and popularity among millennials in western markets.
Regional analysis: North America is expected to dominate the global tequila market, owing to rising consumption in the US. Mexico is also a major market, supported by agave cultivation and a large domestic consumer base. Europe and Asia Pacific exhibit lucrative growth prospects led by rising middle-class disposable incomes in countries like China, India, and the UK.
Key players: Key players operating in the tequila market are Bacardi and Company Ltd., Diageo PLC, Pernod Ricard SA, Constellation Brands, Inc., and Suntory Holdings Limited. Players are expanding their premium product ranges and boosting global marketing and distribution to leverage rising global demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
